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HomeMy WebLinkAbout[04c] Transfers 4(c) Council Agenda Item MEETING DATE: February 21, 2013 AGENDA ITEM: Transfers– Requested Action: Authorize the 2012/2013 Transfers SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: The City Council adopted the 2013 budget in Dec. 2012. BACKGROUND INFORMATION: Annually, the City Council is requested to approve transfers that have been budgeted in the general fund, expensed in another fund. General Fund – Capital Transfers – The City Council budgets general capital expenditures in the general fund to set the general levy. After the budget is set, staff requests a transfer of the general capital budget to the General Capital Outlay fund 490 for tracking. The capital budget is kept in the separate fund for ease of tracking the reserved balance. Many budgeted items are funds for future capital purchases. In addition to the fund 490 transfers, staff recommends transferring the $3,000 budgeted in 2013 for future park improvements to the Park Dedication fund 205. Fund 205 is the budget the Park Board has to establish the park and trail improvements in the City. Operational transfers – Staff requests transferring $8,500 from the General fund to the new Street Light Utility fund 652. Council set aside the funds in the general budget to cover the costs of the street st light utility until the Street Light Utility fund was established and fees determined. As of January 1, expenses relating to the street light utility have been recorded in the new fund. To match the expenses, the transfer is requested. The operational transfer into the Water fund is to cover the cash deficit in the fund at the end of 2012. The cash deficit exists due to two months of usage revenue received in 2013. The revenue will be moved to the Water fund through audit entries, but the cash deficit will remain. Cash reflects the actual cash activity as of the end of the year. To cover the deficit, staff recommends moving $14,000 in the WAC fund 501 and $86,000 from the Debt Service Reserve fund 390. A portion of the $86,000 transfer from fund 390 includes moving interest revenue of $11,575.08. Staff recommends recording the interest earnings from the Debt Service Reserve fund in the Water fund for 2012 and into the future. Council approved a similar transaction between the Half Cent Sales Tax fund and the Water fund a couple years ago. Residual transfer is to officially close out the St. Joseph Development TIF fund 156 and the Northland Heights/Transportation Studies fund 435. The TIF was decertified as of 12-31-12 and fund 435 projects have been completed or ended. The residual capital funds from fund 435 are transferred into the Debt Service Reserve fund 390 since the project bonds were already paid off. Due To/Due From Other Funds transfer is to cover the deficit cash balance in the Meat Market TIF fund 158. The deficit is the result of administrative costs incurred prior to increment revenue received. The State allows for the TIF to be in a deficit pending future increments available. The first increment payment for the Meat Market TIF is expected to be received in June 2013. The cash borrowed to cover the deficit will be paid back once increments come in. BUDGET/FISCAL IMPACT: $384,213.54 between funds ATTACHMENTS: Request for Council Action - Tranfers 2013 Budget Transfers 2012 Operating/Residual Transfers REQUESTED COUNCIL ACTION: Authorize the 2012/2013 budget transfers as requested.